Microsoft quietly shuts down the $99 on-contract Xbox 360 program

Justin Kahn

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Almost two years ago Microsoft introduced its subsidized Xbox 360 bundle for $99. Buyers who opted in would then be locked into a 2 year contract for $15 a month, in which they would receive most online Xbox services. At the time Microsoft gained a fair bit of attention for bringing what was once generally thought of as a model for high end smartphones to the gaming space.

However, Redmond did not appear to be seeking the same kind of attention when it shut the program down as the Wall Street Journal reports. Microsoft quietly discontinued the $99 on-contract Xbox 360 bundles back in July according to Microsoft Spokesperson David Dennis. Earlier this week Dennis said the program "was intended to be a pilot experiment from the start, and Microsoft routinely adjusts the mix of offers available to its customers and this change was simply standard business practice."

The program was available across Microsoft Stores, Best Buy, GameStop and Walmart, and eventually the company offered a higher end 360 on-contract as well. While there was a fair bit of attention when it was announced, it wasn't all positive, some criticized the on-contract machine for being more expensive in the end than buying a system upfront.

At the time of its launch, the $99 machine was rumored to be a sort of test run for something Microsoft would be trying out with its at the time un-announced next gen console. Others suggested it is more likely that Microsoft was just trying to squeeze the last bit of sales out of the potential low cost 360 market as the new machine's launch approached.

While we are yet to see something along these lines for the Xbox One, it isn't entirely out of the question. In 2012, Microsoft's interactive entertainment unit's marketing manager said that the subsidized pricing scheme would remain through future product launches and was "pivotal" to its business. Whether Microsoft does eventually do something like this or not, it is going to have to get creative (or desperate enough to offer a major price drop) in order to catch up to Sony's next gen numbers now.

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What a pain in the @$$ it was to get my Gold account de-commissioned. After 3 reminder (no exaggeration) emails from Microsoft in the last week about my subscription, when I turned on my 360 the next day it was FRICKING useless. Everything was grayed out and they logged me out of my own system.
It kept re-directing me to the page where I re-signup for Gold. After messing around I finally got to a spot where it said, 'Renew Subscription or Revert to Free'.
What the FK does that mean Microsoft? You mean Silver?
But no they don't call it that so it confuses you, they just call it free (SAYS NOTHING ABOUT SILVER ANYWHERE).
After converting my account to free everything came back up. I can still use the games I bought and loaded locally (I own a 250GB Reach Limited Edition 360S) and I can still buy and rent games from Microsoft. Netflix, Hulu and all those require gold to run but who gives a **** I got 1 million devices that run those for free and I don't give a crap about multiplayer gaming or in-game downloads.

This is just another example of their longstanding business model of forcing the drink down you throat, instead of letting you come to the fountain.
 
What a pain in the @$$ it was to get my Gold account de-commissioned. After 3 reminder (no exaggeration) emails from Microsoft in the last week about my subscription, when I turned on my 360 the next day it was FRICKING useless. Everything was grayed out and they logged me out of my own system.

It kept re-directing me to the page where I re-signup for Gold. After messing around I finally got to a spot where it said, 'Renew Subscription or Revert to Free'.

What the FK does that mean Microsoft? You mean Silver?

But no they don't call it that so it confuses you, they just call it free (SAYS NOTHING ABOUT SILVER ANYWHERE).

After converting my account to free everything came back up. I can still use the games I bought and loaded locally (I own a 250GB Reach Limited Edition 360S) and I can still buy and rent games from Microsoft. Netflix, Hulu and all those require gold to run but who gives a **** I got 1 million devices that run those for free and I don't give a crap about multiplayer gaming or in-game downloads.



This is just another example of their longstanding business model of forcing the drink down you throat, instead of letting you come to the fountain.

What does this have to do with the article?
 
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